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tv   Countdown  Bloomberg  December 22, 2015 1:00am-3:01am EST

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>> china will do more to support the economy. a run out to monetary policy. a decision on the fed. >> welcome to countdown here in look atold the let's
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the overnight. i understand the big move. here you go. >> the chinese leaders will do more to boost growth. it makes policy more forceful. latere a rate decision and they expect the increase after a survey from bloomberg. members took board meetings before the policy decisions. backials scaled engagements. year andre up next
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they said the demand for housing stays strong in the economy. rocket has gone to orbit. it intoo rocket guided an old missile range. for more on these stories, go to bloomberg. chinese leaders will do more. there is more stimulus. the chief economics correspondent joins us now. how significant is the announcement? is significant and we do
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not know what the growth target is. thate meantime, we know they have to do more to keep the edge. particular, we see a shift supplies and it is significant. we are not reading much into the's comments. important and the official commentary is about
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easing up and freeing up the tax code to shake up the enterprise sector. it is the glass industry or the steal industry, there is too much of a standard and the government is moving always from the psychologies. they are talking about doing more. >> thank you. peter.bringing in good to have you. policy thate more is flexible and this could be significant. china.e positive on underestimate the firepower and this is another
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example of tools they have to pull levers. fiscal andormous monetary policies and we are starting to see positive effects. the production will increase and we are seeing this improving significantly. >> it is interesting that there is some support to the homebuilding and reducing it supports the housing sector.
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>> there is a big capital and we are starting to see the spread with the ability for local governments to have access to lending with real estate deals. it is likely that we see a housing collapse. >> struggling to find some direction. there are a lot of weaknesses in the rally and they expect more because we are looking at
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training volumes around the region and seeing volatility with traders. we have a little strength with airlines across the region. all of these transport stocks are picking up. a bit of pictures that comes to iron ore, who see gains in the record lows. let's see the property developers.
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and it will get properties up again. one of the laggards in japan today is a company that projected losses on the back of deterioration's of a brazilian unit when it came to the currency. there was news they would be bought out by an electronics maker. toshiba at, this is 13% today and we are looking at a seven year low. are switching things back
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a professional d thates firm made a big was agreed on in the netherlands. premium and itt seems that it has been agreed. we will monitor this one. the meetings with the investors , following thed freedom of information request in the sensitive times. let's speak to our editor. it is good to have you on the
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program. the ecb has been raining in the market. it shows executive board there is a perception there that this cannot be right. we do seem to be scaling back. the range in malta was significant. the new ways of finding stimulus were announced and it was a surprise with the number of areas being visited remaining high with the likes of capital
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credit. unit things continue on and, for some, it may raise issues. it is a tricky one. >> a tricky balance and they have to take market activity and know what is going on. they have to be showing to be giving everybody savings and not revealing anything they should not when they should not. >> the policymakers are in the ivory tal are -- tower and need to get out. trading rapidly and the key is to make it plain through the meeting that we do not need market-sensitive information close to the major monetary
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policy decisions. there will always be a risk that people say you did not say anything in the meeting with some people. reading body language potentially wrongly. beenarkets have disappointed in the ecb wants to avoid this happening. >> thank you to join us there. we get the net borrowing figures and the central rank announces the interest rate decision. next, will turkey be the lace economy to join the club?
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anna: you are watching countdown. suisse filed a claim with the authority and a unit went through the private banking business. has named three senior bankers. james has been appointed to the panel. to pull a is reeling from outbreaks with e. coli and five illle in kansas have fallen , according to the centers for disease control and prevention.
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mcdonald's have fallen the most in five years. the japanese arm is in a series with scandals. global box office sales have improved in the shares price is down. and analysts told bust that people are telling us what they think they are no. they are talking up the franchise. knew the most important thing we had to do was to make good films and this was going to always represent to the company more. we look ahead and there is a lot of activity that is star
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wars-related with plans across the businesses. a rocket exploded on one turned.ew retro rocket guided it to a landing in cape canaveral. catch up.n these, the central government says it is reasonable to expect a rise. let's go to the reporter right now. good to see you. what are we expecting today with the interest rates and did you infer anything from what the government had to say? >> there was the increase of the repo rate and the overnight
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borrowing rate today. would begind they to simplify the monetary policy framework regime and they signaled a process would start. rates and it raise was expected to follow. that is the expectation today. anna: how does the politics fit in? does that go on the show today? is a big question today and they keep borrowing for the
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investments. advisedk, the president the central banks have an opportunity to cut rates and there is the impression that the central bank will be watching. even if they raise the headline rates, they can keep the headline funding. this is what we need to be looking like today. it was a double-edged move. the company is looking at the currency a little bit. give us a reminder. >> the central bank's target is runninge inflation is
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way above that right now. the inflation target weakness is a currency with into the fed hike this being one of the better performing once. pressure on less the central bank after it performed poorly. us.: thank you for joining let's bring peter. we have the turkey central banks here today. the markets expect a hike and the events take place in the liquidity conversation. and theis correct
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recent gdp number has come back at 4%. d connectn able to from the political constraints with the inflation that needs to be tackled. this is above the expectations they need to tighten the rates. capitalctations with have been destructive and they need to start matching the fed to make sure it does not become something destabilizing. cycleer the start of the and how long it lasts, is this something that markets need to
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keep up with? >> it will become a trend to match the fed and make sure the capital outflows do not become destructive. >> where does this start to become a policy where gdp is not strong and it starts to put a dampening effect? idea 2014 and 2015, the was that the race to the bottom was as weak as possible. we have gone to a point with great expectations over stripping weaknesses in currency and destabilizing. they cannot rely on this revenue and it makes it difficult to
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keep the balance between the weak currency. the central banks will have to step with the emerging markets and keep things sticky. report on the extent to which they have been raining back meetings in the political conversation. stepping away from that, where do you see the ecb going? surprised by the september meeting and how hawkish rocky was. he does not want to move forward , unless he absolutely has to. what we are seeing in the solidnes is things are
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and we may see a recovery. , we do as we see growth not think the ecb will go further. it will get into is destabilizing area. you see what happens in japan and it eases across-the-board. eps is a significant conflict of interest and i see it in japan. the market is egging him on and he may reach the limit of what easing can do. i do not think he wants to insight the market into lower interestt rates. i think he will rely on growth and policy changing. have geography, we
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discussions on monetary policy. i read that more needs to be done. >> i think so. there is a change in the rhetoric that is clear. they are looking at japan. is this the most effective usage . >> this will be part of the project and it will be ecb toting to allow the and does policymakers the political situation come back?
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>> we will see. thank you. store andhat is in what you expect in 2016?
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♪ watching in a winter watchlist land! ♪ xfinity's winter watchlist. watch now with xfinity on demand- your home for the best entertainment this holiday season. anna: let's go to first word news. monetary policy was made more flexible. rate decision later and they said it is reasonable to expect the increase after the lift off. the ecb suggested the executive with members curbed assets
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policy decisions. they showed the officials scaled this. there is a perception of unequal access to monetary information. the analysts are saying there is a muted decline and a potential gain in the euro. supply will drive the demand for housing. it remains strong. a rocket exploded on takeoff, a new rocket has gone to orbit before returning to earth. the retro rocket guided it to a landing. your bloomberg first of
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terminal. >> thank you. stay with us. we have the china stimulus story adding things. >> absolutely. the chinese stocks have dropped from a high with a mixed picture . you can see it is pretty muted a muteddging into reaction as the investors are looking at what the signal means. reaction int the the commodities market, we saw it earlier. expect medal to rally with
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good news from china. chinas less about the story and more about the u.s. later. both are hovering around 36 dollars a barrel and it has been a punishing year for the crude market. with metals touching a one-month aussiet impacted the dollar. andcan see this up there the dollar is heading for the biggest monthly decline since april. rise isance for the coming up.
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retailers look to simplify in 2013. could 2016 spell the end of the markets? it is the stuff that dreams are made of. charles. good to see you this morning. walk us through some of the things we have seen. role hasercomplicated been put under huge pressure. getting stock turnover quicker, there trying to recognize imperceptible from year-to-year and we could see more with the populations.
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worked talking about. -- worth talking about. >> there are a lot of families in the u.k. and there will be more with the population growing. people doingeeing isngs in other ways and this to control the budgets and people want to be sure of what they are getting. suppose your interest in retail comes from looking at lending and there are countries that should benefit from the prices. beeneather has unseasonably warm.
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somaticke it from the it has not been this healthy in quite a while with the wages improving. playing like they are and they are more likely. trends withas the food retail? was it delivering as much as people said? >> it probably is the u.k. or they may go higher and, for some individual retailers, we think it is getting close to 10% of the grocery sales. in how to dochange
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company's neede to move the operation to be competitive. >> it changes away in recent years. what are we expecting, in terms of changes? locations have been snapped and people are looking at different places to see smaller stores in different places where you need to get chances.d in delivery big stores with profitability in the format. >> thank you. we're looking ahead to the
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retail story. let's start by delving into your thoughts on the fed. we have seen a number of people with what janet yellin and the fed did. jobhe is learning on the and has stumbled a few times in a challenging situation. off at nasa or the fed is an extreme event. they knew it would happen and there was a priced in sentiment when she finally launched on the high level of the easing and the unprecedented monetary policy. it showed the maturity. anna: you have the federal
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gradually, weand, sort of work that out. >> the fed officials have been pointing to this. >> it is good communication from the fed. aat they are expecting is significant deviation. correct? is it the fed? normally, they missed the mark. that i generally rely on between 1-2 rate hikes in the year. more accurate for the federal reserve? >> i guess they will go with a
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few that they can generate the inflation. ofthere is an extreme amount deflationary pressure and it makes it hard for me to imagine that we see any movement in the inflation in the u.s.. >> how many do you think? >> 2-3 and we think they will be conservative and not aggressively tried to jump in. without the strong wage inflation and the pressure of behtening, it seems to not the best solution with growth being fragile. anna: interesting. peter stays in little longer with us on the program.
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have been real roller coaster rides in the foreign exchange markets this year. we will look at the best and the worst
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and itis bigger than big is $230 million domestic and, sunday, yesterday, it ended and itr than anticipated is higher with the international. we expect the total growth in hasneighborhood and china yet to open. it is an incredible weekend. perspectiveinto
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with the business strategy. what you doange next year? is baked in on the movie films finished shooting. it does not change much. with valuese is up creation. >> it is more than a movie. version been through a of this before. take us through the revenue stream and the spinoffs.
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>> star wars is more than a otherand we touched on franchises in the company. viablers is the most franchise in mythology created in our time. there are six movies george it was always bigger than this. there are books and games and consumer products. the most important thing we have to do is make good films and it was going to represent more than a movie. so, as we look ahead, we have a companyctivity with the , including the parklands and others across the business and
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territories. >> this was the chairman speaking to bloomberg on the new star wars film from over the weekend. it is 7:46. >> thank you. credit suisse filed financial from thed a unit banking business. ship.s about 70 jumped and they are investigating the people who got sick within a week of eating. shares of the donald's have fallen the most in almost five years after a newspaper reported the plan to cut steak in the
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unit. again afterfallen the company forecasted a $4.5 million loss with shares plunging to a low. has about $2firm billion in market value over the past days. has been a booster for the first time. it was guided into the old missile testing range. much.nk you very it is a roller coaster year in the foreign exchange markets to shape the currency. richard jones joins us in the studio and we are joined by
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peter. thank you for joining us. shockingbeen the most part? space iserging market move isand the shocking and we had eye watering moves. there was a shocking move and they talked about how they are anditted to this policy they had abandoned it. >> the trouble is that you either have a pay get or you do not. you talk about having or having
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-- not having one in the future and that does damage. it would have been the market taking in a lot of money and they would not have that. what is interesting is a connection between the central bankers in the markets becoming in a clearntertwined understanding. what they did is an us versus them approach. the central bank is saying a thing and it may not be what is happening. >> you saw this coming. >> it is peripheral where we started and there is the accumulation of reserves that is
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unsustainable and we knew they would drop a bomb. andtwo are incompatible there was the outside idea coming to fruition. >> the central bank is pivotal do you think it is successful with a weaker current see against the dollar? >> you can say, if that is the metric you want to judge by, it has been very successful. bouncedsouth and it has without itable time cratering. using the metric will be
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successful. we will the scsi this in the conversation. which side you have the view for? >> they underwhelmed the market earlier this month and they want to keep something in the back pocket. i do not see an imminent stimulus coming and i think there should be a right to do it, if there is a need. the currency is what they're comfortable with and the data looks like it has trough. i think you will be happy with the way things are. back, do you think it was structural? there will be a lot less and
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awayaluation that takes in argument for china to be the sdr and it is what they are trying to move away from. where theysky move did something to get back on inclusion.t is an improvedrisky move and to work out. anna: the fed raised rates. are you surprised with how calmly the markets have taken it? >> i think that the foreign exchange has been rumbling along all year and it is a consideration on the strength of
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the dollar to keep it tightening. it may have done some of the tightening for them and i think that some of the moves this month had this in mind and it was guided by this in the previous month. of 2016be a big theme and does the fed hike this as quickly or is it more about market consideration? i think the policy will be a big driver of the themes. was there a draw in the traveling with the rate hike? >> it has been a move and a lot of dollar strength is on the line. if we do not get an aggressive ecb, the differential trade
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separates a little and it is a core reason why the dollar has been stronger. if he is sitting on the fence dovish providing a more comment, i am not sure that the dollar has. the dollar value is down and it is not going to be the case with the fed hike. where is the judgment call, richard? >> you look at the exchange rate and the ecb will not be happy, if david is correct and the exchange rate starts to climb. the ecb comfortable with where the exchange rate is right now and they probably
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prefer the range. 112-one 115, we will see that. anna: the commodities have been taken over by the events in the markets and the currencies remain with the markets. will further entrench themselves and it will be a key trade. atre are big bets with oil , it7 and, the further down is quite hard to see. about -- we did not talk about the tangle and we will leave it for another time. thank you for joining us today
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to talk about the fx and the year that was. beijing gets rated do more to we lookthe economy and at what that means for the rest of us.
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anna: china's stimulus. beijing signals it will do more to support the world's second-largest economy. ecb diary revealed pin records show how a thing of board in the curbed meetings run-up to monetary policy decision. ticket rate decisions. it's a decent something about to follow the fed with its own hike . ♪ anna: welcome to count down. i'm and it edwards -- i am edwards. one of the big things, commodities. let's focus in on what is happening with the commodity -- with the copper price.
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copper hitting a one-month high. you look at the extent of the form we have seen. the overwhelming story of 2015 has been weakness in the copper price. a one-month high for the copper price. that rebound in reaction to some of the talks we started to see yesterday coming out about what we are going to see from china on the stimulus front. now talking about monetary policy being more flexible. more fiscal support. all of that coming through. a lot to put in here. i rally in some of those commodity currencies as well. signaleds leaders have a will do more to boost growth. officials say the deficit ratio must be widened. monetary policy must be made flexible. the comment came at the end of the work conference. we get a rate decision of the
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turkish central bank later. at itspect an increase first meeting after the fed lift off. ecb diary suggests that executive board members curbed the days and hours before monetary policy decisions. the records provided to bloomberg show officials scaled-back engagements. aw borrowing costs and shortage of supplies will drive u.k. house prices up 6% next year. that is according to the royal institution. the demand for housing remains strong, java and by record low interest rates. six months after talking non-exploded, -- falcons nine exploded. retro rocket guided it to a soft canaveral. for more of these stores, head to
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bloomberg terminal and anna: china's leaders have signaled they intend to do more to put the break on the country's slowdown. including widening the physical deficit. enda curran joins us from hong kong. how significant is this announcement? what have they told us there are doing already? enda: good morning. ofis a significant gathering policymakers. this statement, when they map out their blueprint. a dove's signal. china's economy has struggled this year did its slowest growth in 25 years. they are making sure the message is out there that they will do more of the fiscal side and on the monetary policy side. meeting thatthe
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set the growth target for next year. we do not know what the target is yet. by all accounts, the message is they are going to ensure the economy keeps coming along. anna: what is it they're going to do on the supply side? enda: this is very important shift. another competition when it comes to china is the demand side which we are all aware of. we know the central bank cuts rates and the central government takes steps to get money blown through the economy. there is a shift that nation to be more than that. then is the more ship -- more than a shift. there -- they are going to have to shake up the old economy. keep an eye out for the enterprise sector. there's been talk about reform in the past. there is no guarantee they will deliver.
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extent on thethe supply side. it seems that china is edging toward getting serious. look for companies to merge. companies to be consolidated. it is significant to see how they balance that consolidation that shedding millions of workers. the supply-side could be significant to sheer -- significant year. anna: let's check in on the markets section did heidi, that's section -- section. thedebt at any boost to market in the asian section? the market inost the asian section? we make it -- once we may get some xi jinping rally.
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managing to and a little bit closing theafter minutes ago. some of these chinese trading partners did quite well on the back of a potential stimulus that could come out from beijing as we go into next year. -- koa at kill we stocks .1%.s, up by some of those gold medals did quite well today. -- i and or prices rallying for a third straight day. property developers in hong kong and shanghai rallied really strong today on the backs of the expectations that will get more policy stimulus. supported measures from authorities in china. a lot of talk about getting down to excess inventory.
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closed up by 8%. is listed at down the 6%. getting tanked today on the back of the first forecast loss since 1949 because of its weakness across its brazilian units. an emerging market story playing out. -- we are hearing outputthat we could seek . we are seeing these basic materials surging today and the 14%.hai session by the other big mover to the downside, toshiba. this is one stock that cannot find a flaw as we can see. checkdown another 10%.
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forecasting that bruising lost on the back of the accounting scandal. cutcompany planning to another 8000 jobs. at $10ket value is down billion. we spoke a little bit about how commodities currencies are getting a non-surge. we are seeing the aussie dollar extending gains today. at 7220 -- atg .70 224. we could be getting more details about that as we head into 2016. and that? louiseet's talk to kernohan. louise, great to have you. let's talk about your global
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growth outlook. we might get some more stimulus coming through for the chinese. is that something you would welcome, the global growth story needs right now? louise: absolutely. estimates have been hit very hard in the last six months. this is only the start. we need to see more evidence of growth from china for anybody to give and any amount of credence. what is your expectation around the global growth? how are you investing in that in 2016? heard people talking about how the trade has been declining and how that might not bode well for the global trade story. the u.s. federal reserve blooming -- looming confidence. louise: what a lot of people have been talking about in the recent commentary.
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the u.s. hiking rates is a positive sign. we have seen the reaction to relativelyen expecting. u.s. said they will because his going ahead. elsewhere in the world, a lot of emerging markets are linked to china. lower commodity prices, lower demand. europe, the story there is relatively positive. think there are some reasons to be positive in 2016. i think there is always the case of expect the unexpected. we certainly saw that in 2015. anna: yet we did. louise kernohan stays with us. european central bank diaries share meetings with investors. the records acquired by ofomberg following a freedom
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information request shows officials are scaling back engagements during sensitive times. for more, let's speak to paul gordon. what is surprising here, the extent to which these meetings are being curbed right before we get these monetary policy announcements? paul: some surprising that. the ecb has said it will not meet banks and hedge funds right before a monetary policy meeting. is the numberse of hedge funds the ecb continues , wellington, the list goes on and on it -- on and on. they are quite numerous. there will be some people would think who are getting the most out of these? the ecb? or the hedge funds? anna: the fact that the ecb is talking to market participants ,s not a surprise as you say
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increasingly away from these key meetings. it is a tricky balance. they need to be informed. how do they strike that balance? paul: it is a difficult one to do. most people would have some sympathy, the fact that the ecb doesn't need to talk to market participants. does need to talk to market participants. in its and know-how investors are going to be reacting -- it does need to know how investors are going to be reacting. it does not disclose harkin sensitive information in a disclose forum -- market sensitive information in a nonpublic or. -- nonpublic forum. isner --l gordon john paul gordon joining us there. turkey votes at christmas.
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will it get an interest rate decision? -- of the first markets to says fed lift off. we'll tell you what to expect coming up next. ♪
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>> insightful. >> innovative.
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anna: welcome back you're watching countdown. turkey announces its latest rate decision. the central bank governors says it was reasonable to expect a rise after fed lift off. let's been to constantine couple of who joins us now. expecting? our markets expecting a tightening? expectsine: the market certain central banks to begin shifts toward monetary policy framework. a shift toward single policy rate. they begin this after the fed lift off.
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that is what the market expects today. increase to the main riga rate. 25 basis point to the overnight borrowing rate. anna: what about the politics of this? are we going to see a fine show of central banking independence in the face of lyrical pressure? -- of political pressure. constantine: the ink has been under pressure from politicians -- to boost investment. saidweek the chief advisor central banks to find an opportunity to cut rates. there's pressure here. the market expects the bank to act today. rates, it canses
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adjust liquidity, so as to keep the average funding costs for banks unchanged. it may not be a tightening move today. that is what the market will be looking for. is a central bank rate decision coming soon after the fed. we have seen some weakness in the turkish lira at the start of this year. inflation running around in a print -- around 8%. the is the situation central bank is trying to deal with? constantine: the central banks inflation target is 5%. also onesh economy is of the most vulnerable economies to higher interest rates. the lira depreciated. it was one of the worst currencies. -- worst currencies in the run-up to the fed. they need to bring in capital.
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factors are at play today. anna: constantine, thank you. that we are almost at the end of 2015, it is worth taking a look at the year that was for the global economy. and see what is in store for us in 2016. simon kennedy joins us. simon, good to see you. what are the trends that are shaped 2015? what can we expect to see prevail next year? we wouldople thought see this big divergence and central banks. we pretty much had that only in the last few days. higher.hed by the fed the first rate hike has gone well for them. ecb,e same time, the jumping in japan are on the --
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the ecb, bank of japan, on the easing side. >> i was pretty much of the view would behat things taking cautiously. i am not surprised that this has -- this is going to continue looking ahead. anna: do you still see the policy divergence ahead? the ecb not doing quite so much loosening. the fed talking dovish sleep. do you still see the divergence to trade around? we needit is something to keep weary of. we have to be aware that these two regions have different dynamics going on. they have to manage their own economies. that is the case. anna: simon, yet been writing -- howspite the fed hike jpmorgan tracks the average rates as desperate average rates
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of developed markets. rates of developed markets. and --bank of america they have seen them grown to 13 trillion at the end of 2017. if you look at the charts of the fed, it is only lifted up slightly. you look atrate -- the ecb rate, you have a very slow rate continuing into next year. anna: the market in the fed in different places in terms of expectation about how fast we see and how many inches rate hikes we see. -- and how many interest rate hikes we see. the market is not expecting the fed can create as much inflation as it thinks it can get is that the key dividing line -- can. is that the key dividing line?
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simon: the fed came back towards the market. some people are saying this is the year the market is not as quite magnetic. the fed is at leader and close the market up. the market tunes and to that analysis. -- the market tunes in to that analysis. and ago there was a next petition that we might get in hike from the fed -- anna: there expectation that we might get a hike from the fed. constantine: -- simon: there is a divergence and the question of just how strong quantitative easing is. how potent are they appeared in the markets could be in for a rock your time next year -- how potent are they.
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in the markets could be -- and the markets could be in for a rockier time next year. what theused in on other actors are doing. qe programs in various parts of the world peace central bankers keep saying we cannot do it all. we need to see reforms. are we going to see a year where that is listened to? simon: perhaps. agenda that performance -- the fiscal policy has been five years of tightening policy overall around the developed markets certainly. next year from the central bankers, there will be a little bit more spending and lower taxes. the account is will be a little more easier and that will help to offset the central banks tightening. anna: louise, and that something you are speaking quite positively about.
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you see the things we already have in place is enough to propel the european economy i think theree: needs to be further reform in europe to help the european economy. the spanish election, we saw the effect on the market yesterday. in europe, the companies are in a good place. we are seeing consumption has tailwinds behind it. it is help from other areas. and a cut you bring up the spanish economy and election, it is interesting because when you look at that from the top down view and put that into the european context, it is easy to box event with other elections. simple of a picture coming out of spain, perhaps. simon: a cloutier picture there. cloudier picture there.
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once they are in, they bring back a little as we have seen in greece. baxter year, politics will be huge for the world. we have presidential elections in the u.s. thehe u k, you've got brexit debate. this -- rather than a it is happening within europe on the political front. he thought that was being expressed in spain. in terms of a opportunity that you're looking to invest around, these are mobile themes. you invest around those? to look for the companies that have been caught up in those? and have been mispriced? louise: we focus on the companies that have been hit indiscriminately in 2015.
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there is a lot of value around commodities, oil. 2016 is going to be a difficult year. very good companies with a strong balance sheet thinking with a five-year time horizon. anna: you found commodity companies that you believe their protest when they say we are not like the others? louise: a lot of companies trade like a proxy and there's a lot more going on. if a mine stays open then maybe their equipment stone is to be serviced. i think it is about going one step deeper and really finding those hidden gems. anna: as long as the mine stays opened. you to you. we are 30 minutes away from the start of the european equity trading today.
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on the move will be up next. he ready to take you everything you need to know ahead of the market open. it is 7:26 here in london. we will be back after a short break after we wake up. in europe for tuesday's trading day. ♪
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♪ watching in a winter watchlist land! ♪ xfinity's winter watchlist. watch now with xfinity on demand- your home for the best entertainment this holiday season. anna: welcome to on the move. it is 7:30 here in london at we are counting down to the european open. i am anna edwards in this is what we are watching. melissa head. china's signal flexible policy and forceful spending to boost growth. market reacts for currencies in china's orbit higher as oils bounces. turkeys -- turkey decides. iny make its first decision a post-fed world. economists seek -- see a hike. nejra: we get a rate decision from the turkish central bank later did -- later. it is expected -- it is
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reasonable to expect an increase. .hey are expecting a .5% hike low borrowing costs and a shortage of supply will drive gigi house prices up 6% next year. says -- driven by record low interest rates. six months after a spacex falcon -- retro rockets guided it to a soft landing at inold missile testing range cape canaveral. for more on these stories, head to anna: thank you very much. 7:31 here in london. this is what we are expecting at the start of today's trading day. the euro stoxx 50 looks as if it will be up .6% at the start. perhaps the ftse 100 and the dax
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getting the best of the gains. we can see some weakness come through on the spanish markets once again. that is a story the complaint to today's trading session. let's take that with a pinch of salt and see how that develops as we get closer to the top of the hour. let's check in on some of the other asset classes. this is a picture across commodities. we got brent crude up a little bit. not next -- nymex crude up a little bit. 36.04. that is helping the australian dollar, the commodity related currency to rebound against the u.s. dollar a little bit. the shanghai composite aged a little bit higher on the back of these chinese numbers. struggling to find any direction. let's tell you more about china. leaders have's signaled to do more.
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they've announced plans to increase stimulus and measures to boost the housing markets. enda curran joins us live from hong kong. -- enda: good morning. on the one hand it is quite significant did this is the most important gathering of policymakers every year. it is where they said the growth target. we don't know what that is yet. they will not publicly announce it until march. when they send a message it is significant. they want to do more to stop growth. it is a dovish signal. china has promised much before, especially in the area of reforms only to disappoint. a lot of talk about taking on vested interest.
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only to fall short of what analyst expect. we'll see if he actually delivers on this going forward. " what about the supply side neck -- anna: what about the supply side? are we going to see china dealing with that? enda: it is an important shift. so much of the narrative on management is on the demand side. it is about spending, fiscal the schoolsk -- growth here it -- fiscal growth. stateinful changes to the of the enterprise sector. there are so many vested powerful lyrical interests in that sector that will require
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quite a head on a approach. it may lead to deeper reforms in the treatment of moral migrants. there is a whole plethora of issues on the supply side that they can pursue. if they do, he comes say it would shirk -- it would shake up growth. on the demand side, you cut rates. this is be a much slower burn process. enda curran joining us from hong kong. let's welcome our guest, alexander dryden. great to see you. thank you for coming in here it let's start by looking at the china story that seems to beginning momentum. the chinese talking about how monetary policy must be more flexible. physical holsey must be more just fiscal policy must be more
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forceful. alexander: china is trying to stabilize the situation and trying to engineer its soft landing. this is part of a bigger puzzle when it comes to the chinese trying to ease chinese growth. in the longer term, i'm to see them carried on reforms. on to see them carried on environmental reforms. as well as deal with the corruption. they need to deal with these things now. anna: some of those pictures of the environment coming through still over the last 24 hours. they have impacted on some of the factories and businesses to operate in china. even away from the truffle environment of toll, it will impact china's ability to do business. out xander: that is when you get the attention deficit alexander:
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that is when you get the attention of the chinese authorities. anna: it talked about how the monetary policy needs to be appropriate for the structural reform it -- reform. like the right kind of message. they're not saying we are backtracking on the performance. they are saying we need more support for the economy. alexander: you're starting to see that transition slowly playing out. the moving away from the old china. they are using monetary stimulus but it is a nice compilation that's a nice combination -- a nice combination. a consumer led transformation. anna: what kind of growth are ?ou looking for from china does that sit with you?
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alexander: i think it is important for investors to remember that china is such a long way -- it is impossible to keep registering double-digit growth. it has to slow down. if china versus 6%, it will do more for global output. it is becoming a bigger part of the global economy. it is also becoming a bigger part of investors portfolios. anna: it is interesting when we heard about housing markets. measures to help the population to find properties. i can hear other voices, guests saying come on stop propping up the real estate sector. .et it sacrifice it let's really operate this economy in a slightly more western lines. desperate youd please to see that they're gone to limit the damage the real
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estate sector could have on the economy? alexander: i think is support to remember that china can't run its economy on a western tempo. you cannot be a communist-leading party and allow your housing market to collapse. the damage it does to your population at how quickly you can see political uncertainty. you cannot allow that to collapse in a western mindset. i don't see it happening anytime soon. i think china will continue to inject support. anna: alexander dryden, thank you. greek prime minister alexis tsipras talks a dubious election -- a dubious election victory in spain. ♪
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anna: welcome back.
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you're watching on the move. it is still dark at 7:42 in the morning. up a littletures bit at the start of trading day. it seems quite punchy when you consider's that's when you consider the session in asia. that news around china helping some optimism. commodityly the related businesses in london. let's get to the morning must read it no mr. tsipras spain did not reject austerity. for bloomberg's view, mark champion rights alexis tsipras was one of the few people claims to understand what happened. -- 80 was -- it was a defeat for austerity. wet is at stake here if analyze was going on, alexis tsipras saying that the spanish people has rejected austerity.
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no, not really. it was not really that simple. what are your thoughts? alexander: it was a kickback by spanish voters. wears -- whether spain is the fastest-growing economy in the eurozone at the moment. you do become slightly disenfranchised with the establishment and the traditional parties. you will see a twist toward the french parties -- the friendship parties. kickbacktrike me as a against the austerity. a little bit of disillusionment with the traditional party. anna: maybe it depends on the you asks -- on the you ask. higher up, a different story. we talked about the intergenerational differences. have 50% ofhen you the 18 to 25-year-olds
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unemployed, it is a big generational divide in terms of wealth and income. you're struggling to find a job, it is not surprising that you're going to get a bit disillusioned with the traditional parties. with the european union as a whole. this is something that is been playing out in multiple countries. it doesn't surprise me that alex tsipras tweeted that. i imagine we will see the effects as these 18 and 25-year-olds carry on in their life styles and become leaders. they are going to take the early life experience with them through this development in the european union. 10 to 15 years time, a comeback as a problem. anna: we saw yesterday in the markets the reaction to spain. it was a really messy fallout as far as the end we markets are concerned.
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-- as far as the equity markets are concerned. ibex wing on the a really negative -- all of that weighing on the ibex 55. a really negative day. alexander: the polls suggested this would come true. what has been happening in brexit and referendums is the polls haven't really got it right. the investors are expecting the polls to be surprised by the results, it looks like a stable coalition. wherebeen a messy result it is hard to see what combination of parties to get together to form a stable coalition government that could last. that is something we will be watching. some of that uncertainty was injected to relative low liquidity markets yesterday. that is why we saw such a
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sendoff. anna: alexander, thank you. up next, we are going to be talking about high yields. we will tap into alexander's talks on that subject. what we have seen in high-yield credit markets, particularly in the u.s., should give us any 216 -- forgns for 2016? ♪
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anna: "on the move." welcome back. you are watching -- you are watching "countdown." nejra: to pull it is reeling from recent outbreaks of e. coli is now being investigated for phase of illnesses. that's after five people became sick. the company has completed a
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conference of reassessment. to see the has fallen yet again after the company yesterday forecast a loss. shares are down 40%, winding about $2 billion of the japanese -- global box office sales probably proved enough for investors. 6%ney's shares are down since last thursday. bob iger has been talking about the franchise. >> when we acquired lucas in 2012, we knew the important thing we had to do was to make good films, starting with this one. it was always going to represent for the company more than just the movie and movie business. as we look ahead, there is a lot relatedity, star wars
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including the park plans. nejra: that is your bloomberg business flash. anna: we're getting in the quiet season ahead of the holidays. what are we expecting in around eight minutes time? nejra: you can see the stock futures pointing higher. we buy see another day of gains for european stocks. ninerobably want to keep on oil and gas companies because what we have seen today is crude hold its declines. brent hit an 11 year low yesterday. after weices decline got those signals from china about more possible stimulus. we're looking at specific stocks, itv, we saw again yesterday after reports that comcast might be contemplating a bit. comcast has now the night those reports. itv being cold, lower at the
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open. the pharmaceutical company, this stock in called higher after discussing u.s. fda approval of a drug for the treatment of -- keep anrterial eye on itv and our tyrian. toa: alexander, according 2016, you believe there is opportunity to be had in high yields. what is the opportunity? alexander: what we have been seeing is a bit more of a high probability of a recession and a few more defaults being based into the yields in the high-yield sector. oilhe continued selloff in and a step down in energy high yields as well in terms of prices. we don't 100% agree is how much
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of the market has priced in the charts of a risk -- the chance of a recession. if you're going to be selective and going to the market and look for the opportunities, we think you can find some in the high-yield space. anna: it is interesting to talk about liquidity. a lot of people are concerned that there might not be the liquidity there if investors decide they want to get their money back. important to is remember that one of the side effects of quantitative easing is wishing people into asset classes that you do not understand. there are quite a few tourists sitting in the high-yield space who might not understand the liquidity dynamics. they are thinking maybe we can start moving back down now that we are in a rate hiking cycle here at -- cycle. the are struggling to get their money back out. that will always be a factor there.
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investors have been encountered with it. anna: not all high-yield is created equal. we got different grades of credit quality. some which is dreadful and some less so. we have seen at the height of this crisis, real concerns about this sector. since then we have seen various -- yields trends [no audio]
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